Boeing Hit With Yet Another Strike—Defense Workers Walk Out in Escalating Labor Crisis

Boeing's labor turmoil deepens as defense division workers down tools—just when the aerospace giant can least afford it.

Another day, another strike. Boeing's defense unit workers have walked off the job, adding fuel to the company's growing labor inferno. No planes getting built means no revenue flowing—but hey, at least the executives' golden parachutes remain pre-packed.

The walkout comes as Boeing struggles to deliver on $58B in defense contracts. With workers now joining the picket lines, those government deadlines aren't getting any softer.

Wall Street's already pricing in the pain—Boeing shares dipped 3% in pre-market trading. Because nothing says 'stable investment' like a company that can't keep its workforce on the job.

Key Takeaways

• Thousands of Boeing employees are on strike Monday after Boeing's latest contract proposal was rejected in a Sunday vote.
• About 3,200 machinists union members in the St. Louis area are striking.
• The strike is Boeing's second labor stoppage in less than a year, after more than 30,000 workers halted manufacturing in the Pacific Northwest last fall.

Boeing (BA) is facing its second work stoppage in less than a year after more than 3,000 workers went on strike at midnight following a rejection of the plane maker's latest offer on Sunday.

The machinists union representing the workers, who build parts and aircraft in Boeing's defense division, said they "have spoken loud and clear, they deserve a contract that reflects their skill, dedication, and the critical role they play in our nation’s defense."

After the vote, the workers started striking at midnight, leaving their posts at a pair of Boeing facilities in Missouri and another in Illinois. The latest offer from Boeing included improvements to wages and pensions, with the current overtime policies unchanged.

Boeing said in a statement that it is "disappointed" that the employees rejected the offer, but said it "prepared for a strike and have fully implemented our contingency plan" for non-union workers to continue production.

The strike now ongoing in St. Louis and other locations is smaller in scale with about 3,200 workers than the work stoppage that saw more than 30,000 employees across Boeing's facilities in the Pacific Northwest strike from mid-September through early November.

Last week, Boeing reported better second-quarter sales than expected as revenue increased across each of its segments, including the defense and space division.

Boeing shares were down less than 1% an hour ahead of markets opening. They entered the day up about 25% since the start of this year.